The plan is to build an affordable spec home and sell for a profit.

At the same time, I have heard that banks charge a higher interest rate for this, and that is outside of my personal financial situation to afford.

Will corporations pay extra, so that employees can afford to have the extra space or will they sell it as a benefit to the employee and gladly keep the savings from not having to provide office space? 

$800 lot rents usually mean a tenant class that can afford to buy.

The Fed is buying agency backed paper to keep the backend markets liquid (which is Fannie and Freddie's primary mission, market liquidity, rather than affordable housing, etc..these other goals are secondary to liquidity).

If so, can you afford to continue paying the $200/month until then? 

Hi, does anyone have any good recommendations for an affordable property tax attorney in Indianapolis who can help challenge property tax assessments for your investments?

For example, do you want something that is move in ready and may just need minor improvements; or would prefer to purchase a distressed property that needs some work, but could potentially yield a higher ROI.As Adam mentioned, getting your financing in order is a crucial first step as then you will know what you can afford to buy.

I have about 5K liquid and I have been looking at areas I can afford, but with the stricter lending guidelines, I know I will have a hard time getting pre-approved.

Then refine your knowledge with questions.Look for a state that is affordable, has reasonable laws and courts that fairly support Landlords, and a growing job market.